We all know that to start driving any car on a public road in the UK, we need to be insured. Have you ever considered how many different types of car insurance there are?
There’s a policy for you, whether you go all in on an annual one straight away or are looking for something more short-term while you consider your options or if you only occasionally drive.
Amongst the short-term car insurance options available are Pay as You Drive (PAYD) and temporary car insurance. In this article, Tempcover will examine the pros and cons of both options, explaining the reasons for using both.
What is PAYD car insurance?
Pay As You Drive or PAYD car insurance is a premium where the price is set by the number of miles you drive. This Pay As You Go approach is increasingly popular with a Daily Express poll stating that around 76% of drivers would prefer to have connected services included in their next vehicle.
When you sign up for this usage-based policy, the insurance provider will install a tracking device in your car. This device uses telematics to let your insurer know the amount of miles you cover and monitor your driving habits including speeding and braking. The more miles you drive, the higher the cost. Prices can also increase if the insurance company deems you as a ‘risky’ driver’.
Paying for the amount of miles driven could appeal to those who only drive occasionally e.g. people who don’t have any day-to-day needs for a car but like to go out exploring at weekends. It may also be a good option for older drivers who don’t drive as often as they used to.
What are the benefits of PAYD insurance?
You’re charged by the number of miles you drive
Rather than the traditional insurance breakdowns, you’ll be charged by how far you drive. This makes pay as you go car insurance a good option for occasional and young drivers.
Cancel the policy when you want
You’re in control of the policy and can cancel at any time you wish, without having to pay the cancellation fee you normally find in a standard annual policy.
You could be a safer driver
With telematics tracking how you drive, you’ll be taking more care and consideration when it comes to driving. This will help keep you and other drivers on the road safe.
One thing worth bearing in mind when it comes to PAYD car insurance is you could end up paying more than other policies if you drive frequently. The number of miles could soon add up. You also may have some concerns around privacy when it comes to the tracking of your driving.
What is temporary car insurance?
Car broken down but need to get somewhere fast? Need insurance to take a car out for a private test drive or get your new one home? Need to borrow a larger vehicle for a family holiday? Temporary car insurance is the solution.
Temporary car insurance is a short-term policy that offers fully comprehensive and flexible coverage tailored to your life and needs. It can be quickly arranged and get you on the road in next to no time. This is perfect when you’re stuck in an emergency or need to borrow a car at short notice.
What are the benefits of temporary car insurance?
It’s a fully flexible option
Fully flexible (and comprehensive when you buy from Tempcover), this could be the perfect insurance solution for a number of short-term needs and is instantly available.
It won’t affect a no claims discount
As temporary car insurance is a completely stand-alone policy, it will not affect any existing no claims discounts. This means even if a young driver goes out with a parent for extra driving practice ahead of their test and has a prang, the parent’s no claims discount will not be affected.
Get a quote in under 2 minutes
At Tempcover, we offer quotes for temporary car insurance in under 2 minutes. All it takes to Tempcover It is:
- Visit www.tempcover.com
- Fill in your details
- Get your quote
- Purchase your policy
Again, the policy prices could add up if used on a regular/monthly basis. In this instance, annual insurance may be more suitable.
What are the differences between PAYD and temporary car insurance?
Duration
PAYD car insurance is paid over a certain time period (often on a monthly basis) while with temporary car insurance you choose how long you need it for.
Tracking
PAYD insurance will involve a tracker being added to your vehicle so that the insurer can count the number of miles you drive and how safely you drive. Temporary car insurance involves no tracking.
Cost
PAYD may be cheaper over a longer term as temp car insurance can be costly if used frequently or for an extended length of time. Temporary car insurance is ideal for short stints like an airport run.
Setup
With tracker installation and various details needed before you start driving, PAYD takes a little longer than temporary car insurance to get up and running. With temp insurance, you can be out on the road within minutes.
Which short-term car insurance is right for me?
Both options have their place, with PAYD providing a cost-effective solution for low-mileage drivers. Encouraging safer driving for anyone who is comfortable with telematics, it could be a great option for anyone who likes the idea of ‘pay as you go’ car insurance. It’s not ideal for frequent drivers and some may have issues with privacy.
Instantly available and fully flexible, temporary car insurance is perfect for specific situations like borrowing a car. While prices are competitive, these can soon build up if you use it on a monthly basis rather than to solve short term needs.
The right kind of short-term cover depends on your personal circumstances and individual needs. It’s worth bearing in mind both pay as you drive and temporary car insurance can solve solutions on a short-term basis.
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